DoD's $237.7M Facilities Support Contract Awarded to Vectrus Systems LLC for Logistical Support

Contract Overview

Contract Amount: $237,652,406 ($237.7M)

Contractor: Vectrus Systems LLC

Awarding Agency: Department of Defense

Start Date: 2007-09-27

End Date: 2013-11-30

Contract Duration: 2,256 days

Daily Burn Rate: $105.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PROVIDE LOGISTICAL SUPPORT SERVICES

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $237.7 million to VECTRUS SYSTEMS LLC for work described as: PROVIDE LOGISTICAL SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract is substantial at 2256 days, indicating a long-term need for these services. 4. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. The North American Industry Classification System (NAICS) code 561210 points to facilities support services, a broad category. 6. The contract was awarded to a single contractor, Vectrus Systems LLC, for the duration specified.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without knowing the specific scope of logistical support and facilities services provided. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the government reimburses allowable costs plus a fixed fee. While the total value is significant, its fairness depends heavily on the efficiency and necessity of the services rendered and the reasonableness of the fixed fee. Comparing it to similar large-scale facilities support contracts would be necessary for a more definitive assessment of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding process where multiple companies likely vied for the contract. The presence of 105342 bids (likely a typo in the source data, assuming it refers to the number of proposals or bidders) would imply significant competition, which generally benefits price discovery and can lead to more favorable pricing for the government. However, the final award went to a single entity, Vectrus Systems LLC.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among contractors. Full and open competition is the preferred method for maximizing these benefits.

Public Impact

The Department of the Army benefits from comprehensive logistical and facilities support services, ensuring operational readiness. The contract supports critical functions that enable military personnel to focus on their primary missions. The services likely impact personnel and operations within the geographic area where the contract is performed (North Carolina). The contract supports a workforce of individuals providing specialized facilities and logistical support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher spending if not closely monitored.
Long contract duration (2256 days) may reduce flexibility to adapt to changing needs or market conditions.
Reliance on a single contractor for a long period could limit future competition or innovation.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
The contract provides essential logistical and facilities support, crucial for military operations.
The fixed fee component of the CPFF contract provides some level of cost predictability for the fee itself.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, is a significant sector within government contracting. This sector encompasses a wide range of services including building operation and maintenance, groundskeeping, and other support activities. Government spending in this area is substantial, driven by the need to maintain extensive real estate portfolios and ensure operational efficiency across various agencies. Comparable contracts often involve large, multi-year agreements to manage complex facilities, reflecting the scale and long-term nature of government infrastructure needs.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it detail subcontracting plans. Given the large scale of the award, it's possible that subcontracting opportunities may exist for specialized services, but this would depend on the prime contractor's strategy and the specific requirements of the delivery order. Without further information, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates rigorous oversight to ensure that all reimbursed costs are allowable, reasonable, and allocable, and that the fixed fee is earned. Transparency would be enhanced through regular reporting requirements and potential audits by the Defense Contract Audit Agency (DCAA) or the Inspector General's office, depending on the contract's value and specific oversight plan.

Related Government Programs

Logistical Support Services
Facilities Maintenance and Operations
Base Operations Support (BOS)
Department of Defense Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration may limit adaptability to evolving requirements.
Potential for cost overruns inherent in CPFF structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $237.7 million to VECTRUS SYSTEMS LLC. PROVIDE LOGISTICAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is VECTRUS SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $237.7 million.

What is the period of performance?

Start: 2007-09-27. End: 2013-11-30.

What is the specific breakdown of logistical support and facilities services covered under this contract?

The provided data indicates the contract is for 'PROVIDE LOGISTICAL SUPPORT SERVICES' under NAICS code 561210 (Facilities Support Services). However, a detailed breakdown of the specific services is not available in the summary data. Typically, facilities support services can include a wide array of functions such as maintenance, repair, custodial services, groundskeeping, pest control, and security. Logistical support could encompass supply chain management, transportation, warehousing, and inventory control. The exact scope would be defined in the contract's statement of work (SOW) and subsequent delivery orders, which are not detailed here. Understanding this breakdown is crucial for assessing the contract's true value and performance.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar services, and what are the associated risks?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or is subject to change, or for research and development efforts. It reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF offers less cost certainty for the government, as costs can fluctuate. The primary risk is potential cost overruns if the contractor's costs exceed estimates, although the fixed fee provides some predictability regarding profit. Effective oversight is critical to manage costs and ensure the contractor exercises due diligence in controlling expenses. Other contract types like Firm-Fixed-Price (FFP) offer more cost certainty but may require a more detailed initial scope.

What was the competitive landscape like for this specific contract award, and how many bids were received?

The contract was awarded under 'full and open competition,' signifying that all responsible sources were encouraged to submit proposals. The data indicates 'no' (number of offers) as 13, which likely represents the number of proposals received. This suggests a moderately competitive environment for this particular award. While 'full and open competition' is the most desirable method for ensuring fair pricing and access for a wide range of contractors, the actual level of competition (13 offers) provides a basis for evaluating whether the government received a sufficient number of proposals to drive optimal price discovery and selection.

What is the historical spending pattern for logistical support and facilities services by the Department of the Army, and how does this contract fit in?

Historical spending data for the Department of the Army on logistical support and facilities services is extensive, reflecting the continuous operational needs of a large military organization. This $237.7 million contract, awarded in 2007 and ending in 2013, represents a significant but likely one component of the Army's broader spending in these categories over that period. The Army often utilizes large IDIQ vehicles and multiple delivery orders to procure these types of services across various installations and commands. This specific contract's value and duration place it as a substantial award for the services rendered, fitting within the typical pattern of long-term, high-value contracts for essential support functions.

What are the potential performance risks associated with Vectrus Systems LLC based on their track record with this or similar contracts?

Assessing performance risks for Vectrus Systems LLC requires a review of their past performance on this specific contract and other government contracts. Without access to performance evaluations, past performance questionnaires (PPQs), or contract data system reports (like CPARS), it's difficult to definitively state risks. However, general risks associated with large-scale facilities and logistical support contracts include service disruptions, cost overruns (especially with CPFF), failure to meet performance standards, and issues with workforce management or security. The CPFF structure itself introduces a risk of higher-than-expected costs if not managed diligently. A thorough review of CPARS data would be the most reliable method to identify specific performance concerns or commendations.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 13

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vectrus, Inc. (UEI: 079387563)

Address: 655 SPACE CENTER DR, COLORADO SPRINGS, CO, 80915

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $255,568,494

Exercised Options: $255,568,494

Current Obligation: $237,652,406

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911SE07D0006

IDV Type: IDC

Timeline